What is a Demotion Letter?
A demotion letter is a formal communication to an employee that they have been demoted to a lower role or title. A demotion can be a reduction in rank or job title, or a change in department. It may also lead to the loss of other privileges associated with a more senior rank and/or a reduction in salary or benefits.
It can be considered as an alternative to termination when an employee consistently fails to meet job performance standards or objectives.
A high-quality draft covers, among other things, the following matters:
- Date and Employee Details
- Reason for Demotion
- Effective Date
- New Position and Responsibilities
- Changes in Compensation, if any
- Support and Training, if offered or required
